We’re waiting for either of two trading opportunities to materialize in the week ahead: 1) bottom-fishing this presumptive correction; and/or shorting DIA at 217.21, a promising Hidden Pivot rally target. To attempt the former, bid 211.96 for 200 shares, just above the ‘d’ target shown, stop 211.84. You could substitute call options, but I’d go out no further than June 30 on the expiration, since this trade will go in-the-black immediately if it works at all. Please note that although DIA could turn from a secondary Hidden Pivot support at 212.80, I’ll suggest ignoring the possibility to keep things simple. We’ll concern ourselves with shorting 217.21 if and when DIA gets close._______ UPDATE (Jun 26, 8:03 p.m. EDT): Cancel the bottom-fishing bid; we’ll focus for now only on the shorting opportunity detailed above. _______ UPDATE (Jun 27, 7:37 p.m.): DIA looks like it will need to come down to at least p=210.43, or even x=207.03 (click here for chart), before it starts looking attractive again as a buying opportunity. We can convert a ‘mechanical’ bid into a ‘camouflage’ entry trigger if either number is reached, but I’d suggest taking a bearish bias for now. Specifically, bid 0.30 for four July 7 211 puts, good for the first 15 minutes of Wednesday’s session.
